Asian coal prices fall as China remains reticent

  Singapore—Asia-Pacific metallurgical coal prices softened Thursday, as trade into China was stymied by the anticipation of further softening amid strong supply. Premium low-vol hard coking coal fell $1.25/mt day on day to $97.25/mt CFR China. This equated to $90.05/mt FOB Australia netting back with Panamax freight. Prices for non-prime material fell $0.25/ mt to $91.50/mt CFR China, or $84.30/mt FOB Australia on a Panamax netback. May supply was ample and there were some offers lingering for prompter April oadings, sources said. An offer was heard for Australian premium low-vol coal with below 72% CSR at $97/mt CFR China, for end-April loading. There was also chatter of a deal done at $96/mt, which most participants agreed was repeatable. But this could not be fully verified. Meanwhile, there was availability for May loadings of Rangal-type 61-63% CSR, 7-8% ash HCC. Bid indications were no higher than $89-$90/mt CFR China.Meager Chinese demand meant international suppliers had to cut offers and send shipments elsewhere — at least four premium low-vol deals for material with above 71% CSR were heard done by trading companies this week at $93-$95/mt FOB Australia for April and May loadings.There was also a deal heard done for 54,000 mt of June-loading blended Australian premium mid- to low-vol with below 69% CSR, at $94.50/mt FOB.Quality controls biting into PCI demandOn PCI, a Chinese supplier said only a handful of South China steelmakers appeared keen on imports. “It’s hard to put a price on PCI cargoes at this point,because of the quality control testing that heightens the risk of buying anything now,” the exporter said.Inner Mongolian coke seller cuts prices In the domestic coke market, one of the largest Inner Mongolia coke producers lowered its sales price by Yuan 40/mt to Yuan 880/mt DDP Tangshan early this week, for its Grade 2 coke with 57% CSR,13% ash and 0.65-0.8% sulfur material. For its Grade 1 coke with 60-65% CSR, 12.5% ash and 0.65% sulfur material, the price fell Yuan 50/mt to Yuan 950/mt